Tarai Foods Limited Reports Higher Losses in Q2 FY26 with Zero Operational Revenue
Tarai Foods Limited reported a net loss of ₹11.1 lakhs for Q2 FY26, representing a 54.2% increase from ₹7.2 lakhs loss in the corresponding quarter last year. The company continues to face operational challenges with zero revenue from operations and increased expenses, particularly in fuel, power and water costs which surged 440%. The company's financial position remains strained with negative equity of ₹299 lakhs and declining cash reserves from ₹99 lakhs to ₹54 lakhs during the half-year period.
*this image is generated using AI for illustrative purposes only.
Tarai Foods Limited has released its unaudited financial results for the second quarter ended September 30, 2025, revealing continued operational challenges and widening losses. The company, which operates in the manufacturing of fresh and frozen foods and vegetables, reported deteriorating financial performance across key metrics.
Financial Performance Overview
The company's financial performance for Q2 FY26 showed significant concerns with increased losses and continued absence of operational revenue.
| Metric | Q2 FY26 | Q2 FY25 | Change |
|---|---|---|---|
| Total Income from Operations | ₹0.0 lakhs | ₹0.0 lakhs | No change |
| Net Loss (After Tax) | ₹11.1 lakhs | ₹7.2 lakhs | +54.2% |
| Total Comprehensive Loss | ₹11.1 lakhs | ₹7.2 lakhs | +54.2% |
| Basic EPS | ₹-0.07 | ₹-0.05 | -40.0% |
| Diluted EPS | ₹-0.07 | ₹-0.05 | -40.0% |
Expense Analysis
Despite zero operational revenue, the company incurred various operational expenses totaling ₹11.1 lakhs in Q2 FY26 compared to ₹10.2 lakhs in the corresponding quarter of the previous year.
| Expense Category | Q2 FY26 | Q2 FY25 | Change |
|---|---|---|---|
| Employee Benefit Expenses | ₹2.4 lakhs | ₹2.1 lakhs | +14.3% |
| Depreciation and Amortisation | ₹4.0 lakhs | ₹4.0 lakhs | No change |
| Fuel, Power and Water | ₹2.7 lakhs | ₹0.5 lakhs | +440.0% |
| Other Expenses | ₹2.0 lakhs | ₹3.6 lakhs | -44.4% |
| Total Expenses | ₹11.1 lakhs | ₹10.2 lakhs | +8.8% |
The most significant increase was observed in fuel, power and water expenses, which surged by 440% to ₹2.7 lakhs from ₹0.5 lakhs in the previous year.
Balance Sheet Position
The company's balance sheet as of September 30, 2025, reflects a challenging financial position with negative equity.
| Balance Sheet Item | Sep 30, 2025 | Mar 31, 2025 | Change |
|---|---|---|---|
| Total Assets | ₹278 lakhs | ₹333 lakhs | -16.5% |
| Share Capital | ₹1,536 lakhs | ₹1,536 lakhs | No change |
| Other Equity | ₹-1,836 lakhs | ₹-1,795 lakhs | -2.3% |
| Total Equity | ₹-299 lakhs | ₹-258 lakhs | -15.9% |
Cash Flow and Liquidity
The company's cash position deteriorated significantly during the half-year period ended September 30, 2025.
| Cash Flow Component | H1 FY26 | FY25 |
|---|---|---|
| Net Cash from Operating Activities | ₹-9.73 lakhs | ₹4.78 lakhs |
| Net Cash from Investing Activities | ₹0.0 lakhs | ₹0.50 lakhs |
| Net Cash from Financing Activities | ₹-17.03 lakhs | ₹-14.03 lakhs |
| Net Change in Cash | ₹-26.76 lakhs | ₹-8.74 lakhs |
Cash and cash equivalents declined from ₹99 lakhs as of March 31, 2025, to ₹54 lakhs as of September 30, 2025.
Corporate Governance
The Board of Directors approved these unaudited financial results at their meeting held on November 14, 2025, which commenced at 4:30 PM and concluded at 5:15 PM. The results were reviewed by the Audit Committee and accompanied by a limited review report from the statutory auditors, Sunil Vashisht & Co., Chartered Accountants.
The company maintains its paid-up equity share capital at ₹1,536.41 lakhs with a face value of ₹10 per share. The shareholding pattern remains unchanged with public shareholding at 53.41% and promoter group holding 46.59% of the total share capital.
Historical Stock Returns for Tarai Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.06% | -0.24% | +10.55% | -1.64% | -8.81% | +109.50% |
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